Are Reward Cards Worth It?

Some credit cards offer rewards for charging to their card. They might give you points that are redeemable for airline miles, hotel stays, and other amenities, or they might give you a percentage cash back. Sometimes they will give you a flat percentage cash back for everything, or they will give you more on certain purchases. For example, gas credit cards offer a higher cash back on cash purchases and a smaller cash back on other purchases.

Are these rewards worth the trouble of applying for and getting a credit card? For some it might be, but for most it's not. Here is a little quiz to see if you would qualify as a person to benefit from rewards cards. Questions: Do you budget all your money? Do you stick to your budget completely at least 98% of the time? (meaning to might buy a treat but only when you know you can afford it) Can you go to the store and only buy what you went there to buy? Do you pay off your credit card balance in full every month? Do you spend a lot of money overall on daily and monthly necessary expenses that you can charge to your credit card?

If you answered yes to all these questions, you will be able to benefit from rewards credit cards. If you spend $1,000 or more each month on chargeable things, this can often include utilities, you can get a lot back with a cash back card. For example, at this amount, if you had a 2% cash back card, you could get $20 back every month. This is assuming there is no limit over $20. Also, you must understand that you have to pay off the balance in full every month in order for this to be worthwhile. If you leave a balance on the card that's charging you interest, the amount you are charged in interest may cancel out the cash back, or worse, you will owe money overall.

If you don't pay off your credit cards every month, forget about the cash back advantage. If you have trouble with controlling your spending and budgeting, you'll end up spending more on purchases. Even if you pay off your balance and get $20, if you spent $200 more than you normally would, you are down $180. Taking advantage of cash back rewards requires strong self-discipline and financial responsibility.

If you want to know more about reward credit cards and to find out where to sign up, go to BestCreditCardComparisons.info for more information.